S 2357 New Jersey Senate · 2026-2027 Regular Session

Requires disclosure of third-party litigation funding agreements and establishes certain responsibilities for litigation funders.

New Jersey's S 2357 requires parties in civil or administrative lawsuits to disclose any third-party funding agreements upfront - when filing a complaint or when the agreement is made. It directly affects plaintiffs, their attorneys, and third-party funders who pay legal costs in exchange for a share of settlement money. The bill mandates that funders act in the client’s best interest (a fiduciary duty), caps their fees at 25% of settlement proceeds (with total fees for funders and attorneys limited to 50%), and bans funders from influencing case decisions or offering legal advice. Funders must also be jointly liable for court costs or sanctions related to the funded case.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2026 Last action Jun 8, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Technical Review Of Prefiled Bill Introduced · 3 edits · Jan 13, 2026
MINOR
This is a procedural transition from a committee-reported version with technical review to an introduced version pending technical review by Legislative Counsel. The substantive text of the bill is essentially unchanged; the only textual edit is a minor grammatical fix removing the word 'means' from the definition of 'civil action.' A new STATEMENT section was appended, which is a legislative summary describing the bill's provisions on third-party litigation funding disclosure, fiduciary duties, prohibited funder conduct, and exemptions.
TECHNICAL

The bill designation changed from 'S2357 TR' to 'S2357' and the status line changed from 'As reported by the Senate Commerce Committee with technical review' to 'Introduced Pending Technical Review by Legislative Counsel,' reflecting the procedural stage of the bill.

A STATEMENT section was added at the end of the bill providing a legislative summary of the bill's provisions, including disclosure requirements for litigation funding agreements, fiduciary duties imposed on funders, prohibited funder conduct (such as influencing case decisions, exceeding 25 percent of proceeds, or securitizing agreements), and an exemption for pre-settlement funding used solely for living expenses. This is a summary of existing provisions, not new policy.

DEFINITION

In the definition of 'civil action,' the word 'means' was removed, changing the phrasing from a full sentence to a fragment. This is a minor grammatical/technical correction with no substantive policy impact.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
3
Key actions
0
Committee
1
Jun 8, 2026
Committee
Referred to Senate Budget and Appropriations Committee
upper
Jan 13, 2026
Introduced
Introduced in the Senate, Referred to Senate Commerce Committee
upper
2 primary · 2 co-sponsors

Sponsors